Questions and Answers

Q. How much money will be needed to start a Paradise Donut
Shop?

A. On average a Paradise shop will cost approximately $25,000
to $35,000 to open. It is one of the best business choices for an
individual or couple who have saved around $15,000 to start a
business. The cost to open a store can be greatly affected by the
amount of remodeling of the desired location that has been chosen
to place a donut shop.

Q. Is finding employee's a problem for donut shops?

A. It is the largest obstacle for almost all business owners.
however,Paradise Store owners have found that when they spend a
sufficient amount of time properly training their employees they
have increased their longevity of employment. We have also found
with proper incentives and direction, it is easier to create a
dedicated and loyal employee. The most important thing is for the
owner to set the best example.

Q. How much money can I make in the Donut Business?

A. This, of course, is one of the most common questions we
hear. The most given answer is that it depends on your dedication
to always serving quality product and giving quality service.

Paradise stores in towns of 6,000 or more have had the best
results, however in smaller towns who have a large community to
draw from or have high traffic counts they have been equally
successful.

In the donut business, success is usually in direct correlation
to time spent and effort given.

Q. Will Paradise products be more cost effective than other
products I can buy in the market place?

A. In any industry there will always be someone less expensive
or someone that will offer their product for a higher premium. The
price of almost all products is based upon the cost of ingredients
that are involved in the creating of that product. Paradise as a
company will not sell an inferior or lower quality product to try
to compete with a lower price of inferior products.

We realize quality ingredients equals quality products and long
after the sale the customer will be less concerned with a few
cents saved and more about the quality of products that was
provided. Paradise flour is designed to provide a higher yield
than most of our competitors to produce a good profit margin for
our shop owners.

Q. How do I know the best location to place my shop in
town?

A. Paradise sales representatives have all previously been shop
owners. They bring a lot of knowledge with them when they first
come to look at the location that you have chosen. They will
assist you in determining the success of the location.

Q. How do I create a floor plan?

A. Once the building is approved your Paradise representative
will assist you in taking the measurements and setting the layout
for your building. Paradise will create a floor plan for you at no
cost. The plan will be created with efficiency including your
plumbing, carpentry, and electrical needs in mind. However, we
always suggest the owner be advised of the local building codes
before following the plans given to them.

Q. Does Paradise charge for the delivery of supplies?

A. No, all Paradise products are delivered free of charge,
however on some occasions when the order has been under the agreed
upon amount consistently, to offset freight charges a nominal fee
of 10 % has been added, this is the exception, not the rule. In
most cases there is a 20 % savings over many of our competitors.

Q. When do I take delivery of my equipment?

A. When it has been determined that your building is ready for
the installation of equipment your Paradise representative will
assist in making arrangements with you for the delivery of
equipment to your store.

Q. Do I purchase all needed equipment from Paradise?

A. Paradise Donuts spends a great deal of time in finding
equipment for future stores. In most cases Paradise Donuts will
have the equipment needed, if not we will help you find it.

Q. Are the Paradise representatives qualified to help or train
me?

A. All of the representatives of the company have either been
successful owners of donut shops or have been trained to be
productive in assisting you. They speak from experience to answer
all of your questions.

Q. What and how much training does Paradise Donuts
provide?

A. The training at your shop will begin after your equipment is
installed and you have received all licenses and permits to open
your Paradise shop by state and local officials. Your
representative will provide 2-3 days of training for you and your
staff.

Q. What is it that makes the Paradise Donut company a better
choice for you over another company?

A. As a company with almost 40 years of experience we have
created a name in the industry synonymous with quality. We are
determined to give you everything we can to make you successful,
because as a licensee your success is important to our success.

Q. What is the protected territory that Paradise offers?

A. Your protected territory is a guaranty that there will be no
other Paradise licensees located within 3 miles of your shop
location. On rare occasions an existing ship owner has been able
to place a shop within the 3 mile radius. This must first be
approved by Paradise Donuts Inc. and the nearest shop to your
proposed location. A Paradise Shop owner is part of a family and
as family we word together for the greater good, not our own
agendas.

Q. Does Paradise provide signage?

A. No, however since Paradise Donuts is a registered and
copyrighted trademark you will need to submit the graphics of your
signage for approval prior to ordering.

As an authorized Paradise Shop owner you may use the name
"Paradise Donuts" on all advertising, printed material or signage
that has been approved.

Q. What equipment if any will you need to place in your store
not supplied by Paradise?

A. Paradise Donuts does not sell items such as cash registers,
counters and shelving refrigerators, office supplies etc.. This is
the responsibility of the store owner but your Paradise
representative will help make a list based upon your needs.

Q. Why is the Paradise name so important when starting my
donut shop?

A. Brands comfort and assure customers by providing reliable,
well known quality products and services. When your customers see
a familiar name such as Paradise Donuts it sends a clear message
that their expectations will be met. They will feel confident in
the consistency of their experience.

As a Paradise shop owner, you will have the opportunity to
receive the benefits that are earned through the consistency of
our business practices in servicing our customers every day.